[Canada] COVID-19 New T4 Slip Requirements

For the 2020 tax year, the Canada Revenue Agency (CRA) has released new requirements regarding employment income reported on the T4 Slip, Statement of Remuneration Paid. This requirement is for all employers.

What's new?

Why is this new requirement being introduced?

Will there be any other new T4 requirements?

How is Wave handling this?

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What's new? 

In addition to reporting employment income for your employee(s) in Box 14 (employment income) of their T4 Slip, you will also be required to report their employment income for four specific dated periods using new codes in the "Other Information" area of the T4. This is only for the 2020 tax year.

The codes and dated periods correspond as follows: 

  • Code 57: Employment income – March 15 to May 9
  • Code 58: Employment income – May 10 to July 4
  • Code 59: Employment income – July 5 to August 29
  • Code 60: Employment income – August 30 to September 26

The employment income reported is based on the pay date that your employee(s) received their income from you. 
For example, if you are reporting employment income for the period of April 25 to May 8, and paid it to your employee on a pay date of May 14, you would report it using code 58 (May 10 - July 4). 

Why is this new requirement being introduced?

Having the employment income separated for the specific periods listed will assist the CRA to cross-reference any income your employee(s) may have received through the Canada Emergency Wage Subsidy (CEWS), the Canada Emergency Response Benefit (CERB), and/or the Canada Emergency Student Benefit (CESB) as a means of validating any received relief benefits. 

Will there be any other new T4 requirements? 

Yes, we do expect more requirements to be released before the end of the year.

In terms of CEWS reporting, the CRA has said to expect information to be released shortly.

Additionally, there is also the possibility that there may be a requirement to report the Ten-percent Temporary Wage Subsidy for Employers, but there has been no mention of this so far on Government webpages.

How is Wave handling this? 

Wave will be able to allocate your employees' employment income into those periods with the appropriate T4 code based on the pay date recorded in Wave. 

If you joined Wave after March 15, 2020, (in other words, after the specific reporting periods began) Wave is currently working on a feature to be able to gather and accurately record your payroll history to allocate the appropriate wages with the correct T4 code.

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